$900M lawsuit filed against Mortgages Ltd.

Investors have filed a $900 million federal lawsuit against two Phoenix law firms alleging their attorneys helped real estate investment firms Mortgages Ltd. and Radical Bunny mislead and defraud investors and operate a Ponzi scheme. Former executives from Mortgages Ltd. and Radical Bunny also are named as defendants in the class-action suit, along with law firms Greenberg Traurig LLP and Quarles & Brady LLP. Greenberg represented commercial real estate lender Mortgages Ltd., while Quarles provided legal counsel for Phoenix-based investment group Radical Bunny. The lawsuit, filed Tuesday in U.S. District Court in Phoenix, also names accounting firm Mayer Hoffman McCann PC as a defendant. Mayer provided accounting services for Mortgages Ltd. Rich Himelrick, an attorney at Tiffany & Bosco PA representing investors in Mortgages Ltd., said plaintiffs in the two ventures want their money back, which totals $900 million. He said charges include fraud, negligent misrepresentation, breach of fiduciary and professional duties and aiding and abetting a Ponzi scheme.

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